The largest independent manufacturer of sterile medical bags and pouches in the U.S. Its sister company designed packaging machinery and held valuable patents.
Brookwood advised the ownership of KenPak in sale of the Company after having been approached by many buyers.
Engagement Process and Outcomes
The Situation – The client was approached by many buyers, including a member of the Dow Jones 30 and a large European conglomerate, as well as large U.S. and Canadian public companies. Two bidders were key suppliers to the company (one for film, the other for Tyvek), requiring particular attention, responsiveness and hand-holding.
Effective Positioning and Marketing – Brookwood designed and managed the bidding process: instructions, timing, and definitive contract. The process included five bidders, the smallest being a $1 billion U.S. public company. Brookwood designed the structure for the sale of manufacturing plants plus exclusive licenses on current and future machinery IP for the healthcare market. Brookwood judged how much one bidder wanted the company and guided them to a premium bid.
Complications – The owner sought a transaction with a lower value bidder primarily due to perceived prestige affiliation; this bidder’s choking bureaucracy and inflexibility killed the deal within 60 days.
Excellent End Result – Brookwood designed a strategy for going back to the premium bidder, meeting with CEO to ascertain the bidder’s continued level of interest and commitment. The transaction closed 60 days later at the same premium value as previously bid.